As you set career goals for 2012, a raise might be on your list. After all, the economy is slowly recovering, unemployment is ticking down and your employer is likely in a better financial position than in the last year or three.
But before you go into your boss's office demanding more money, take the time to lay the groundwork for a successful conversation. This means researching the typical compensation and salary path for your industry, company, and job position. Most important, understand exactly what results your boss expects of you, so you can demonstrate that you've exceeded them.
"The framework of the conversation shouldn't be, 'this is what I want; I want a raise,' it should be, 'I know what the company wants of me: x, y and z, and I've done it,' " says Peter Handal, chairman and chief executive officer of Dale Carnegie Training.
If you and your manager haven't already set specific performance goals that you can compare your work against, have a conversation to come up with goals for the coming year. Be explicit about the financial rewards associated with achieving those goals, whether it's a bonus for successful sales or a salary increase for a certain level of performance. Then, follow up at an agreed-upon time -- perhaps three months -- with a broader discussion about your career that includes the question of compensation.
"Don't wait until the salary raises are given to you. By the time it comes to you, it has gone through five or six levels of approval, and it's a done deal," says Zahir Ladhani, president of the compensation business at Kenexa, whose Salary.com division offers online salary data and tools. "For your manager to be able to shift some dollars, you need to start the process at least two to three months ahead of time."
If you've never negotiated a raise before, you're in good company. Only 12% of people surveyed by Salary.com always seek more money during an annual performance review, while 44% never bring up the subject of raises at review time.
It's okay to acknowledge that the topic of money may be uncomfortable, says Alan King, president of Workplace Options, a benefits support firm based in Raleigh, N.C. Tell your supervisor that you'd just like to begin the conversation so that the two of you are on the same page for your career goals; you don't need a decision about a raise immediately.
"What you're offering to the employer isn't just, 'Give me something,' you're saying to the employer, 'I want to grow in this company,' " King says. If you're already at the top of the pay range for your position, you may need to seek a promotion rather than a raise -- you'll only earn more when you achieve a higher level of responsibility.
Never speak disparagingly or compare yourself to another employee when seeking a raise, nor should you threaten to leave if you don't get more money. Instead, keep the conversation positive and collaborative. Think about how you can become more valuable to the employer. If your benchmark research shows that you're earning less than you should be for the job you're performing, say, "Help me understand this," suggests Ladhani.
